Good practice guide: Internal audit for brokers
Read time: 12 mins
Service: Governance, risk & control assurance Sector: Insurance
The extension of the Senior Managers and Certification Regime (SM&CR) to broking firms later this year also demonstrates the FCA’s desire for firms to ‘raise the bar’ in these areas. We see a wide variation in the extent to which firms have established and implemented effective frameworks or functions for managing risk and for providing assurance on the effectiveness of internal controls (ie internal audit).
This Good Practice Guide summarises what these functions should look like within a three lines of defence model with some examples of good practice. Whilst it highlights good practice, doing something is better than nothing, so firms should carefully consider how they can implement good practice in a way that is appropriate and proportionate.
We hope this provides some useful guidance and demonstrates the benefits that risk management and internal audit can bring to your firm.